CalCAP Lender Roundtable Oct ober 16, 2018 Renee Webst - - PowerPoint PPT Presentation
CalCAP Lender Roundtable Oct ober 16, 2018 Renee Webst er-Hawkins, Execut ive Direct or Introductions AB 1547 Updates and Rulemaking S tatus CalCAP Programs Overview and Updates CalCAP/ S eismic S afet y CalCAP/ ADA The
Oct ober 16, 2018 Renee Webst er-Hawkins, Execut ive Direct or
Introductions AB 1547 Updates and Rulemaking S
tatus
CalCAP Programs Overview and Updates
CalCAP/ S
eismic S afet y
CalCAP/ ADA CalCAP/ EVCS CalCAP/ S
mall Business
CalCAP/ CARB Collat eral S
upport
2018 Recapture Update Training Refresher/ S
urvey of Training Needs
CalCAP/ CARB One-S
t op event s
Outreach updates
Assembly Bill 1547 (Quirk-S ilva) was signed by Governor Brown on S eptember 21, 2018.
CalCAP will be amending regulations to implement the statutory changes to the CalCAP/ ADA and CalCAP/ S eismic financing programs
The proposed amendments include:
CalCAP/ADA: Redefinition of the term “ S
mall Business” or “ Qualified Business” to reflect an increase in the number of employees from 15 to 30 for a small business to qualify for the CalCAP/ ADA program. It also allows the small business income and maximum employee number to be interchangeable for program eligibility.
CalCAP/Seismic: Modification of the definition “ Qualified building” for the
CalCAP/ S eismic S afety program to identify the type of building eligible under the program to include property potentially vulnerable in an earthquake or constructed before 1981.
Removal of the occupancy requirement from the definitions of a “ Qualified small
business” , a “ Qualified residential property owner” , and a “ Qualified commercial property owner” of a qualified building to authorize a qualified loan under the program to be used to finance passive real estate ownership.
Adds, strengthening a building’s lateral load resisting system to the definition of
“ S eismic retrofit construction” to conform to standard building industry language.
Estimated Rulemaking Timeline
Oct. 9 – 5 working day Notice posted on CPCF
A Website.
Oct. 17 – CPCF
A Board meeting.
Oct. 18 – Emergency regulations filed with OAL. Oct. 23 – Public comment period ends. Oct. 28 – OAL review period ends. If approved, the
emergency regulations are filed with the S ecretary of S tate and are in effect.
April 28, 2019 – Emergency regulations expire.
The following Amendments will be made to the regulations for the S eismic S afety Program:
It is no longer a requirement that an owner is also an occupant
A qualified loan can be used to finance passive real estate. S
trengthening a building’s lateral load resisting system is now included as an eligible loan purpose for seismic retrofit construction.
eismic borrower’s webpage: https://www.treasurer.ca.gov/cpcfa/calcap/seismic/owners/index.asp
ummary, Lender Manual, and Program Forms at: http://www.treasurer.ca.gov/cpcfa/calcap/seismic/summary.asp
Loss Reserve Program for small businesses with 30 or fewer employees to alter or retrofit the existing facility to comply with federal and state ADA (Americans with Disabilities Act) requirements.
Fees and Contributions Lender and Borrower: 2 –
3.5 %
CPCFA: 4X the Lender Fee SAC: Equal to the Lender Fee Reimbursement for CASp Report Costs Borrower can be reimbursed for an amount equal to up
to 5%
the CAS p report.
Program S
ummary, Lender Manual, Program Forms at: http://www.treasurer.ca.gov/cpcfa/calcap/ada/index.asp
CalCAP has launched a new CalCAP-ADA borrowers webpage
https:/ / www.treasurer.ca.gov/ cpcfa/ calcap/ ada/ sbo.asp
Information includes:
Who Qualifies How to Apply CAS
p Report Reimbursement
Additional links are also
provided which are very beneficial to borrowers or potential borrowers.
Our CalCAP/ ADA Participating
Lenders List is Growing! We’ d love to add your name!
http:/ / www.treasurer.ca.gov/ cpcfa/ calcap/ ada/ institutions.pdf
Loss Reserve Program for small businesses with 1000 or fewer employees to install electric vehicle charging stations at their place of business.
Fees and Contributions Lender and Borrower: Not Applicable CPCFA: 20% of the loan amount DAC or Multi-Unit Dwelling: 10% of the loan amount Borrower Rebate Rebate of up to 15%
Program S ummary, Lender Manual, and Program Forms are located at: https://www.treasurer.ca.gov/cpcfa/calcap/index.asp
Loss Reserve Program which encourages banks and other financial institutions to make loans to small businesses that have difficulty
Employs fewer than 500 full-time equivalent employees.
At least 51%
payroll comes from business in California.
Business activity resulting from the bank’s loan must be created and retained in California. The Program insures loans made to small businesses for the following:
Land acquisition Construction or renovation of buildings; S
tart-up costs;
Equipment or inventory purchases; Capital proj ects; and Working capital
Reminder:
Communities (SAC) based on the Governor’s declaration of state of emergency.
AC contribution to the loan loss reserve account for these designated counties:
Date of Declaration Counties End Dates for SAC October 9, 2017 But t e, Lake, Mendocino, Nevada, Orange, Napa, S
December 31, 2018 October 10, 2017 S
December 31, 2018 December 5, 2017 Los Angeles, Vent ura December 31, 2018 December 7, 2017 S ant a Barbara, S an Diego December 31, 2018 July 5, 2018 S iskiyou July 5, 2019 July 26, 2018 Mariposa, Riverside, S hast a July 26, 2019
Loss reserve program for heavy duty vehicle loans for small business owners with fleets of 10 or fewer vehicles. CARB Cont ribut ion Thresholds 14 % Contribution - for first $500,000 in t ot al cont ribut ions 7 % Contribution - for $500,001 - $1.5 million in t ot al cont ribut ions 4 % Contribution - for cont ribut ions over $1.5 million Program S ummary, Lender Manual, and Program Forms at : https://www.treasurer.ca.gov/cpcfa/calcap/arb/index.asp
HEAVIER TRUCKS and buses with a GVWR greater than 26,000 pounds must comply with a schedule by engine model year or owners can report to show compliance with more flexible options.
.LIGHTER TRUCKS and buses with
a GVWR of 14,001 to 26,000 lbs. have compliance requirements starting January 1, 2015.
More informat ion can be found at : ht t ps:/ / www.arb.ca.gov/ msprog/ t ruckst op/ t b/ truckbus.ht m
More informat ion can be found at : ht t ps:/ / www.arb.ca.gov/ msprog/ t ruckst op/ t b/ t ruckbus.ht m
A new borrower’s webpage has been launched.
https:/ / www.treasurer.ca.gov/ cpcfa/ calcap/ arb/ index.asp Information includes: Who Qualifies How to Apply Preventative Maintenance Additional links are also provided
which are very beneficial to borrowers or potential borrowers.
CalCAP-CARB now allows warranties on
eligible equipment to be included in the loan financing.
On the CalCAP loan enrollment form, include “warranty” in the
section “ Purpose of Loan” , indicating the number of months/ years premiums are included in the loan amount.
Electric trucks are eligible for CalCAP-CARB
loan enrollment.
Reminder
This CalCAP program pledges cash to cover the collateral shortfall of a loan in order to enable financing that otherwise might not be available to a small business. Eligible borrowers must meet the these criteria:
Business is considered a small business under the U.S . S mall Business Administration
Employs 750 employees or fewer full-time equivalents
A maj ority of the business activity takes place in California Eligible Uses of Loan Proceeds:
Any tangible or intangible asset purchase, including: construction,
renovation or improvements of an eligible place of business;
S
tart-up costs
Working capital Franchise fees Equipment Inventory and Bridge loans prior to the borrower obtaining permanent financing or support.
2017 Recapture Figures 2018 Recapture Figures State Contributions: $392,945 State Contributions: $17,485 Federal Contributions: $2,469,165 Federal Contributions: $1,328,769 CARB Contributions: $6,152,066 CARB Contributions: $2,587,677
2017 Recapture Figures 2018 Recapture Figures State Contributions: $392,945 State Contributions: $17,485 Federal Contributions: $2,469,165 Federal Contributions: $1,328,769 CARB Contributions: $6,152,066 CARB Contributions: $2,587,677
Currently in final Testing –
Will be available for all Lenders End of October to Mid November
S
ubmission of loan enrollments through CalCAP inbox will still be available, though the goal is to eventually only use the online method
Technical assistance and training
will be available https:/ / calcap.treasurer.ca.gov
CalCAP offers training for newly enrolled lenders and refreshers are suggested and highly encouraged for existing lenders with new employees
What programs would you like to see more training on? Would you like additional training on proper completion/
Do you have suggestions on how the forms could be
improved?
S
uggestions? ? ?
What are CARB One S
top events?Fleet
regulation updates, compliance assistance & clean air technology options.
Regulatory Assistance Inspection Demos Funding Options for On-Road trucks Attendance is FREE and gets you an exhibit table
that you can customize to promote your business.
CARB plans to set a comprehensive schedule of events
and has asked for lender input
Google Survey email coming soon
CalCAP’s outreach team participates in events that we are invited to, examples include:
enate and Assembly members
takeholder focused educational conferences and seminars Opportunities for CPCFA/CalCAP lender partnership:
event along with CalCAP staff?
about CalCAP’s menu of capital access programs?